I'd venture to assume that the biggest problem with custodial solutions isn't necessarily an internal rugging but the fact that its a central point of failure. Your custodial funds are just one password away from being compromised.
0xtr's avatar 0xtr
Ooof this is bad. A 144 GB database full of personal information about adult El Salvador residents was leaked. There are unconfirmed rumors that this leak stems from Chivo, the bitcoin wallet offered by the El Salvadorian state. Always remember that KYC is the illicit activity. https://protos.com/hacker-doxxes-nearly-every-adult-in-el-salvador/
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Or one rouge employee away from being compromised. Or one social engineering attack away from being compromised.